Fund Operations

Equalisation

Definition

What is Equalisation?

An accounting adjustment intended to treat incoming and existing fund investors fairly in relation to accrued income or performance fees.

Example in practice

A new investor does not pay a performance fee on gains earned before joining.

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The deadline by which a valid fund instruction must be received for a particular dealing day.

The specified time at which a fund values its assets and calculates dealing prices.

A fund-pricing method under which orders receive a price calculated after the instruction is accepted.

A debt security through which an investor lends money to an issuer in return for promised payments.

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